The Batam Aero Technic Special Economic Zone (BAT SEZ) is Indonesia’s premier aviation maintenance hub, offering a full suite of Maintenance, Repair, and Overhaul (MRO) services. Strategically located within Hang Nadim International Airport, this 30-hectare SEZ plays a pivotal role in supporting Indonesia’s aviation industry and boosting its competitiveness across Southeast Asia.
Also read: Complete Guide to Doing Business in Batam: Advantages, Strategic Locations, Potential Sectors
Integrated with International Aviation Infrastructure
BAT SEZ benefits from direct runway access, reliable fuel supply, and robust utility services such as electricity and high-speed internet. It is directly connected to Hang Nadim International Airport, allowing efficient aircraft operations and streamlined logistics. Outside the zone, critical infrastructure like Batu Ampar Port enhances connectivity with global shipping routes.
Also read: Recommended Industrial Parks in Batam for Businesses
Comprehensive MRO Services and Technical Facilities
BAT SEZ offers complete MRO solutions, including:
- Line and heavy maintenance
- C-checks and D-checks
- Engine overhaul and component repair
- Aircraft painting and interior upgrades
Specialized shops such as APU, landing gear, and engine workshops support efficient service delivery. The facility is equipped to service Boeing 737s, Airbus A320/A330, ATRs, and Hawker jets, ensuring broad compatibility across fleets.
Certifications and Global Recognition
BAT is certified by major aviation authorities:
- Indonesia’s DGCA
- US FAA
- Malaysia’s CAAM
- Thailand’s CAAT
- Philippines Civil Aviation Authority
These endorsements support its work with domestic and international airlines like Lion Air, Cebu Pacific, SpiceJet, and DrukAir.
Also read: Why Batam Is a Smart Choice for Doing Business
Economic Impact and Investment Potential
Massive Investment and Job Creation
BAT SEZ targets Rp 7.29 trillion in total investment by 2030. As of mid-2024, Rp 884 billion has already been realized. The zone is expected to generate 9,976 jobs by 2030, with 2,070 currently employed—primarily technicians, engineers, and aviation professionals.
Foreign Exchange Efficiency
Indonesia traditionally relies on foreign facilities for aircraft maintenance, costing up to Rp 26 trillion annually. BAT SEZ is designed to save 65-70% of that expense, helping the country retain value within its domestic aviation economy.
Strategic Expansion and Market Outlook
The facility currently supports 23 maintenance lines with capacity for 44 aircraft. There are ongoing plans to increase capacity to accommodate 56 aircraft and to extend the SEZ by an additional 20 hectares. Hangar G, operational since 2024, has capacity for 24 aircraft alone.
Also read: Leading Industries in Batam: A Blueprint for Southeast Asia’s Industrial Future
Benefits and Incentives for Starting Business in Batam Aero Technic SEZ
The following are some of the tax and investment incentives for starting a business in Batam Aero Technic SEZ:
Tax and Fiscal Incentives
- Up to 20-year corporate income tax holidays depending on investment size
- Additional tax reductions of 25%–50% after holiday period
- VAT and import duty exemptions on machinery, raw materials, and domestic purchases
- Excise and luxury sales tax exemptions
- Investment allowance (30% tax deduction over 6 years)
- Accelerated depreciation and amortization
- Extended loss carryforward (up to 10 years)
- 10% dividend withholding tax for foreign investors
Also read: Batam’s Tax Incentives for Investors
Operational and Administrative Benefits
- IBOSS online system for faster licensing and approvals
- Single-window clearance with reduced bureaucracy
- 100% foreign ownership allowed
- Building use rights up to 80 years
- Foreign property ownership within SEZ
- Simplified work permits for expatriates
Also read: Incentives for Business and Investment in Batam
Public-Private Partnerships and Collaborations
BAT SEZ has forged alliances with aerospace giants:
- Airbus: Supporting A330-900 flight hour services
- Pratt & Whitney: Technology transfer for engine maintenance
- Honeywell: Enhancing component reliability
- FTAI Aviation: Module replacement for CFM56 engines
These collaborations enable world-class service delivery and continuous technical innovation.
Positioned to Dominate Asia-Pacific MRO Market
Southeast Asia’s MRO market is forecast to hit $13.48 billion by 2032. BAT SEZ aims to capture a significant share by offering competitive service rates, international standards, and strategic proximity to Singapore and Malaysia.
The aviation industry in Indonesia is experiencing rapid growth on a global scale. BAT SEZ supports national ambitions to become a regional aviation hub while driving sustainable economic growth in the Riau Islands.
Register Your Aviation Business in Batam
Looking to set up your aviation or logistics business within BAT SEZ? InvestinAsia’s Batam Business Registration Service helps simplify and accelerate the setup process. From company incorporation to SEZ licensing, their expert consultants will help you navigate every regulatory step.
Contact us now for FREE consultation!
Batam Aero Technic SEZ exemplifies Indonesia’s industrial ambition—fusing strategic infrastructure, international partnerships, and cutting-edge MRO services. With growing demand for aviation maintenance in the Asia-Pacific region, BAT SEZ is poised to become a central player in the global aerospace ecosystem.
For investors and aviation businesses, the opportunity to engage with one of Southeast Asia’s most promising SEZs has never been more compelling.
FAQs
What is Batam Aero Technic SEZ?
It’s Indonesia’s first Special Economic Zone focused exclusively on aircraft Maintenance, Repair, and Overhaul (MRO).
Where is it located?
The SEZ is inside Hang Nadim International Airport, Batam, Riau Islands—close to Singapore and Malaysia.
What services does it offer?
BAT SEZ provides complete MRO services: inspections, repairs, overhauls, parts storage, and aircraft repainting.
Who operates the SEZ?
It is operated by PT Batam Teknik, a Lion Air Group subsidiary.
Can foreign companies invest in BAT SEZ?
Yes. The SEZ welcomes foreign investors, especially in MRO, logistics, and manufacturing.
What certifications does BAT SEZ have?
It holds approvals from FAA, DGCA (Indonesia), CAAM (Malaysia), and other aviation regulators.
How can I start a business in BAT SEZ?
You can use InvestinAsia’s Batam Business Registration Service for a guided setup process.
